Testing Retirement By Touring The Country In An RV

At some point we all dream of what our retirement will look like. For some it’s a condo on the beach, perhaps spending more time with family or maybe getting into a new hobby. For a growing number of Americans it’s hitting the open road in a recreational vehicle.

Lynn and JC MacNaught initially wanted to escape the cold of winter while traveling the U.S. in their 34-foot travel trailer looking for a warmer place to settle. “Even though our original goal was to find someplace warmer, we quickly realized that there was an opportunity for us to try out two retirement options at once. We’re able to test the full-timer lifestyle (living full time in an RV) while exploring potential areas where we might settle permanently if we decide to hang up the keys,” says Lynn. They both agree that the RV lifestyle is not for everybody. “While you may have taken a vacation in an RV, making the commitment to the life of a “full-timer” is a different story,” says JC.

When they began their journey, they had a vague idea of the obstacles they were facing. Could they afford it? Would they be able to spend that much time together in a small space? Would their dream match the reality? “Even though we didn’t have all the answers, we were committed to trying. We knew what we didn’t want our golden years to look like, and that knowledge was enough for us to take the leap,” reminisces JC.

Where to Start

Living full time in an RV requires careful planning for everything from finances to organization. Since Lynn and JC, in their mid-40s, weren’t financially ready to retire, they began by reaching out to their respective supervisors and were able to secure agreements to continue in their current jobs, but as contract employees. They then had to adjust their budget to include self-employment taxes and private health insurance as well as adjusting for the lack of employer contribution to their retirement funds.

The next big step was down-sizing. “We were going from 4,000 square feet of space to 300 square feet. We quickly realized how many non-essential items we had accumulated over the years just to fill that space,” shares JC. “We gave a lot of things to family and friends, sold as much as we could and donated the rest. It was a very freeing experience.” Some full-timers do maintain a “home base” where they can keep things stored or rent storage spaces for items they can’t part with.

An ongoing part of the process is determining where to go, how to get there, what to do when you get there and how long to stay. There are many organizations, forums and clubs that can provide insight. Lynn and JC chose to become members of Escapees RV Club in part to take advantage of their mail forwarding service, which allowed them to establish residency in Texas where the club is headquartered (keep in mind that all states have their own residency laws). They’re also members of RV.NET, an internet RV forum provided by Good Sam Club, another full-service RV club. But, one of the best resources that JC and his wife found were the people they met at the various parks where they stayed. JC explains, “Not only did our new neighbors give us tips on where to go or where to eat, but they gave us personal insight on where to travel and which parks to stay in.”

It was during these conversations with their neighbors, the majority of whom were fully retired, that Lynn and JC started to get the inkling that this type of retirement might be for them. Lynn says, “We began this journey with the basic idea that we would travel to warm places and try them on for size; see if that was where we might want to spend the rest of our lives; but now, who knows, we may just keep the adventure going.”

Things to Consider

Get your finances in order. Regardless of what type of retirement you plan, you have to make sure you’re able to fund your dream.

Some people think that after the initial investment, RVing is a cheap lifestyle. It can be, but you have to keep in mind the cost of maintenance, park rental fees, utilities, insurance for both the RV and any towing or towed vehicle, entertainment (satellite TV, Internet, etc.), and so on.

Do you have a home base, or will you opt for residency services that some organizations offer? Keep in mind that this can change your tax situation, depending on which state you establish residency in as well as how long you can spend in another state without violating their residency laws.

Will you have routine doctor appointments that require you to be in a certain area at a certain time? Do you have any scheduled surgeries? Some parks have on-site care centers that allow you to recuperate after surgery or injury.

Think about attending an RV seminar or boot camp offered by many organizations.

Keep in mind that living together in a small space can be challenging to any relationship. If you and your partner get on each other’s nerves by the end of a week-long vacation, this isn’t the life for you.

Have a 12-month travel plan that keeps you in the right part of the country at the right time of the year. This helps with budgeting as well.

While there are no hard statistics on how many Americans are living the life of a full-timer, the number of RV-owning households is growing, as indicated in a survey conducted by the Recreational Vehicle Industry Association. According to RVIA, approximately 8.9 million U.S. households—or 8.5 percent—currently own some form of RV. This represents a 7.9 percent increase from 2005. That’s a lot of opportunities to take retirement for a test-drive.

The Northwestern MutualVoice Team is a group of professionals who share insights and opinions from experts and industry leaders across the enterprise. Our vision is to inspire others to take action and plan for their financial future through topics ranging from financial planning, retirement planning and distribution strategies, wealth accumulation and preservation, to leadership, philanthropy and innovation.

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